The Future of the Loyalty Program
Mobile payments in stores is something new, it’s only just begun to see people using it in even the most developed and fast adopting countries. As a company we know this technology will take time. Why? Because we’re not only bringing new technology to market, we’re seeking to change behaviour in people that’s been common for decades. Convincing people to go from using traditional credit cards to inputting that information on a mobile app and getting into the habit of using that, will take time. But it’s the natural evolution of the process, which is why so many big players are attempting to enter this sector.
At inVibe we go a step even further than that, what better way to convince people to adopt this new behaviour than by paying them to do so, and that’s where the cashback aspect of our app comes in. Our stores incentivise their customers to use our app, and our job is to convince them to do so in order to bring on the behavioural change we are hoping for. As we sit down with the brands we always get asked “how does this differ from a loyalty app?”, and to be fair, although they are completely different concepts at heart, the end value for the customer remains the same, they are getting something for free in exchange for regular usage of a service. Which is why we believe that the arrival of mobile payments has meant that tying payments with cash rewards in one service, will be the natural evolution of the Loyalty Program.
Loyalty has been a great idea to have over the past years, but one thing it will never be is an essential component of buyer behaviour. There will not be a point where a product or service cannot be purchased without the use of a loyalty program, the same case can’t be said of payment.
It’s an additional variable: Will the customer download the additional loyalty app? Will they remember to use it?
Are these the kind of questions you would ask about a payment? Will it ever be possible a customer forgets to pay? As the adoption for mobile payments will increase, so will the demand for payment linked loyalty. As what better way is there to increase customer spending, than to reward them for making a transaction, not just walk through the door. And what better way to convince them about a payments app, than by rewarding them for using it.
You don’t have to take our word for it, but our friends at LevelUp seem to agree in this post from their blog.